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United States Economy

10 year low for US Building Permits

More poor housing data out overnight from the US, showing building permits fell 8.9% to a 10 year low of 1.429 million. This fall was the largest percentage fall in 17 years. Meanwhile housing completions fell 5.8% to a 6 year low of 1.523 million. Housing completions across the USA

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Australian Economy

Crack out the Champaign – Australian Consumer Confidence at 32 Year High

Crack out the Champaign, consumer confidence is at 32 year highs. Don’t worry, I can afford Champaign – I’ve just put it on my 2nd credit card – but, I’m confident I can pay it off maybe next year. The Westpac/Melbourne Institute index of consumer sentiment rose to 123.9, up

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United States Economy

Home Builder’s Confidence at 16 Year Lows, as Median Home Prices fall to 2 Year Lows

Overnight in the U.S. the National Association of Home Builders/Wells Fargo housing market index has fallen to 16 year lows. “This weakness suggests we should not expect a sustained rebound in starts anytime soon,” wrote Drew Matus, an economist with Lehman Bros. Data from the Federal Reserve would suggest at

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Australian Economy

Mr Costello : Don’t worry about subprime, everything will be all right – or will it?

On Macquarie Regional Radio today, Costello was playing down the effects on the subprime mortgage crisis in Australia. Costello said he would continue to closely monitor developments in the US, but the Australian situation was “different.” Data from the Reserve Bank of Australia and the US Federal Reserve would indicate

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United States Economy

Flipping ends with $US2.2 million debt and 6 properties in foreclosure

This video is an insight into the mistakes 24 year old Casey Serin made in the property market. Now Casey Serin tells his tale in the hope of warning other property investors the pitfalls of property speculation. Casey started out trying to make a quick profit in ‘flipping’ properties, that

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United States Economy

Weak US employment data, now weak retail data. What next?

More evidence today that the US consumer is curbing spending. Poor retail data out last night caused a sharp fall in the Dow Jones : The International Council of Shopping Centers weighs its results differently and tallied an overall same-store sales drop of 2.3% to set the largest decline on

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United States Economy

Weak US employment data for April

Last night US employment data was released for April showing a weaker than expected 88,000 jobs added, one of the worst results for two years. Drilling into the report, it showed Significant job losses in April came in general merchandise stores, where employment dropped by 41,000, and credit intermediation, where

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Australian Housing

Gold Coast House Prices Fall

The ABC reports that the median price for houses at the Gold Coast has fallen 3 percent in the first quarter this year. » Report reveals lower Gold Coast house prices – ABC, 30th April 2007.

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United States Economy

Your economics lesson

I came across a video taped guest lecture today from the Department of Economics at Humboldt State University that pretty well sums up the current situation. The guest lecturer was Dr. Christopher Thornberg from Beacon Economics. The lecture was given on the 30th November 2006. » Real Estate Bubbles and

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Australian Housing

Sydney houses down almost 16% in three years as bankruptcies climb

A report today shows bankruptcies are rising. In NSW in the first quarter this year, there were 2,404 bankruptcy proceedings. This is reported to be up 7.1% from the previous quarter (December 2006) and up 22 per cent for the year. With many people entering into debt arrangements, the problem

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United States Economy

A house costs less than a car in Detroit

There are reports today that a four bedroom house in Detroit sold for $7,000, cheaper than many used cars. Detroit which is known for its car industry but this industry has been in decline which is only exaggerating the subprime mortgage problem. Detroit now holds the title of capital of

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United States Economy

Credit crunch leaves New Century to file for bankruptcy

The second largest subprime mortgage lender, New Century Financial, last night filed for bankruptcy. It said it would immediately lay off 3,200 employees making up half of its workforce. » New Century files for bankruptcy, is selling units – Market Watch, April 2nd 2007

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United States Economy

Accredited Home Lenders shares plunge 64%

The crisis among US subprime mortgage lenders continues as Accredited Home Lenders fall 64% in a single trading session. » ‘Liquidity crisis’ seen looming for Accredited Home; shares plunge – Market Watch, March 23th 2007.

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United States Economy

Collateral Damage, Subprime Style

Panic today among shares of US subprime lenders with NovaStar Financial falling 41%, Accredited Home Lenders falling 26% and Fremont General falling 32% as investors make way for the exits of a industry full of bad debts. » ‘Panic’ takes hold as subprime lenders slump – Market Watch, March 5,

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United States Economy

Subprime loan concerns in the US

There are concerns today in the US subprime market after New Century Finance fell 7.6% after it delayed filing earnings. Countrywide Financial also fell 1.1% after a report suggested it saw a sharp increase in late payments in 2006 » U.S. stocks end lower as jitters continue, Dow falls 80

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United States Economy

Too busy watching the correction to notice?

Australia’s All Ordinaries Index plunged by 212 points to 5773 at the 10.15am open today, wiping about $45 billion from the value of the Australian stockmarket It would appear investors were too busy watching the Dow fall last night to see data released for January showing new house starts plunged

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Australian Housing

Euphoria from the Adelaide Sunday Mail

The Adelaide Sunday Mail has some top quality journalism today. There is a full two page spread showing, by suburb, what your Adelaide house will be worth in 2016. Titled “Future Shock : Welcome to our millionaire city“, they tell us that Adelaide will have 83 million-dollar suburbs by 2016.

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United States Economy

Record Breaking

It is interesting watching the US housing market unfold. Late last year we saw some of the fastest plunges in the sales of new homes ever recorded, only for the new house market to close the year with sales down 17.3%. On Friday night, it was reported new house sales

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United States Economy

Defaults on U.S. insured mortgages at record high

NEW YORK, Dec 31 (Reuters) – Defaults on privately insured U.S. mortgages rose 34.7 percent in November to the highest level on record, reflecting the inability of a growing number of homeowners to keep current on their loan payments. » Defaults on U.S. insured mortgages at record high – Reuters,